BILL NUMBER: SB 962	CHAPTERED  09/28/00

	CHAPTER   795
	FILED WITH SECRETARY OF STATE   SEPTEMBER 28, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 28, 2000
	PASSED THE SENATE   AUGUST 28, 2000
	PASSED THE ASSEMBLY   AUGUST 23, 2000
	AMENDED IN ASSEMBLY   AUGUST 18, 2000
	AMENDED IN ASSEMBLY   JUNE 7, 2000
	AMENDED IN ASSEMBLY   FEBRUARY 10, 2000
	AMENDED IN SENATE   APRIL 7, 1999

INTRODUCED BY   Senator Escutia
   (Coauthors:  Senators Bowen, Hayden, Hughes, Perata, and Solis)
   (Coauthors:  Assembly Members Aroner, Bock, Calderon, Cedillo,
Dutra, Knox, Kuehl, Mazzoni, and Washington)

                        FEBRUARY 26, 1999

   An act to amend Section 11006.2 of the Welfare and Institutions
Code, relating to human services.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 962, Escutia.   Public assistance payments by direct deposit.
   Existing law requires the State Department of Social Services to
provide for the delivery of public assistance payments.
   Existing law specifies that any person entitled to the receipt of
public assistance payments may authorize payment to be directly
deposited by electronic funds transfer into that persons's account in
a financial institution, and requires each county treasurer to make
an agreement with one or more financial institutions participating in
the Automated Clearing House pursuant to the local rules, and to
establish a program for the direct deposit by electronic funds
transfer of payments to any person entitled to public assistance
benefits and who authorizes the direct deposit of funds into the
person's account in a financial institution.
   Existing law limits that requirement to counties in which the
board of supervisors has adopted a resolution to implement an
electronically based system for delivering public assistance
payments.
   This bill would impose that requirement upon each county that
offers a program for direct deposit by electronic funds transfer to
its employees.  By imposing the requirement of providing benefits
through electronic funds transfer to those counties, this bill would
result in a state-mandated local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  (a) The Legislature finds and declares all of the
following:
   (1) California welfare recipients are in the process of making the
transition from welfare into the paid labor market.
   (2) Part of this transition should include participation in the
economic mainstream by having the choice to establish banking
relationships.
   (b) It is the intent of the Legislature to assist welfare
recipients in this transition by reducing the barriers to full
participation in the banking system.  It is the intent of the
Legislature that this act address and eliminate one of those
barriers.
  SEC. 2.  (a) The Legislature finds and declares:
   (1) Many California banks offer low- or no-cost accounts for
customers who make their deposit through direct deposit.
   (2) Direct deposit is widely offered by many private and public
employers and utilized by many employees because of its convenience,
reliability, and low cost.
   (3) This option is not currently available to most California
public assistance recipients.
   (b) It is the intent of the Legislature in enacting this act, to
provide public assistance recipients an option to have their monthly
cash benefits deposited into a bank account.
  SEC. 3.  Section 11006.2 of the Welfare and Institutions Code is
amended to read:
   11006.2.  (a) The department may provide for the delivery of
public assistance payments at any time during the month consistent
with federal law relating to recipient monthly reporting
requirements.
   (b) The department shall cooperate with county treasurers and
private financial service providers, including depository
institutions, licensed check sellers, data processing service
vendors, and retail merchants, in developing and implementing an
electronically based system for delivering public assistance payments
to those recipients who do not have individual deposit accounts with
financial institutions.
   (c) (1) Notwithstanding any other provision of law, any person
entitled to the receipt of public assistance payments may authorize
payment to be directly deposited by electronic fund transfer into the
person's account at the financial institution of his or her choice
under a program for direct deposit by electronic transfer established
by the county treasurer.  The direct deposit shall discharge the
department's obligation with respect to the payment.
   (2) Each county treasurer shall make an agreement with one or more
financial institutions participating in the Automated Clearing House
pursuant to the local rules, and shall, by December 1, 2001,
establish a program for the direct deposit by electronic fund
transfer of payments to any person entitled to the receipt of public
assistance benefits who authorizes the direct deposit thereof into
the person's account at the financial institution of his or her
choice.
   (3) This subdivision shall apply in each county that offers a
program for direct deposit by electronic funds transfer to some or
all of its employees.
  SEC. 4.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
